PolyNetwork’s cross-chain bridge tool suffers a staggering exploit, resulting in the issuance of billions in tokens. The incident highlights the vulnerability of bridges in the crypto ecosystem and sparks concerns about security and investor confidence.

Attackers manipulated PolyNetwork’s bridge tool, generating tokens on different blockchains, including Binance USD (BUSD), BNB, and Shiba Inu (SHIB). They minted a massive 24 billion BUSD and BNB tokens on the Metis blockchain and a staggering 999 trillion SHIB tokens on the Heco blockchain. Other tokens were also illicitly minted on networks like Avalanche and Polygon, briefly inflating the attackers’ wallet to over $42 billion in tokens.

However, liquidity limitations prevented the attackers from fully capitalizing on the stolen tokens. Metis developers confirmed the absence of sell liquidity for BNB and BUSD tokens, while developers promptly locked the illicitly-issued METIS tokens on the PolyNetwork bridge.

Despite these obstacles, the attackers managed to find liquidity for some of the illicitly-minted tokens. Analytics firm Lookonchain reported exchanges of 94 billion SHIB tokens for 360 ether (ETH), along with conversions of 495 million COOK tokens for 16 ether and 15 million RFuel tokens for 27 ether. Lookonchain also observed asset movements and the transfer of 1 ETH to new wallets, suggesting potential intentions for future sales.

This marks the second attack on PolyNetwork, underscoring the critical role bridges play in facilitating the transfer of tokens across networks. It serves as a stark reminder to address vulnerabilities within bridges, safeguard user assets, and maintain the integrity of the crypto ecosystem.

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